Betting on China: Chinese Stocks, American Stock Markets, and the Wagers on a New Dynamic in Global Capitalism
Betting on China takes readers on an illuminating journey into the often confusing and poorly understood world of Chinese stock issuances in America. With insightful qualitative and quantitative analysis, it looks at the phenomenon of equity and capital exchanged between the world's two largest economies and the implications for global finance. Written in an accessible narrative style and amply supported by hard data, the book examines the context and underpinnings of the Sino-American equity relationship, revealing its core dynamics through real-world case studies that range from the precedent-setting blockbuster IPO of China Mobile to the near breakdown of the U.S.-China equity exchange mechanism brought about by short seller attacks on Chinese concept stocks.
Combining an insider's eye with an outsider's objectivity, American born author and Beijing-based consultant Robert Koepp explores the reasons and the means by which China, America, and the global economy reap enormous gains from the process of Chinese companies issuing equity shares on U.S. stock markets. Betting on China exposes the complexities and nuances of a vital but underappreciated pillar of modern international finance and offers a window into China's role as a dominant but still modernizing economic superpower.
- Analyzes on a macro- and microscale the forces that move Chinese companies to raise capital on NASDAQ and the New York Stock Exchange and what this means for the world at large
- Explores the real stories behind why and how China-based enterprises develop as public companies listed in the United States—and why government regulations need to work in support of and not against this force of market nature
- Shows that the "betting" on China that occurs through the U.S. equity market exchanges is critical for getting an accurate picture of China's position and prospects in our interactively connected global economy
Detailed but accessible, Betting on China is essential reading for global finance professionals, policymakers and regulators, students of finance, people doing business in China, and anyone curious about China's place in—and impact on—the global economy today and in the years to come.
Chapter 1 Wagers of the Dance: China, America, and the Interplay of Public Equity 1
A Hierarchy of Financial Footwork 1
IPOs for Cash-out and Cash-in 5
A Ground-Level View 7
U.S. China Issuances Measuring Up 22
Chapter 2 Realities, Theories, and Gung Ho: The Ying and Yang of Chinese Issuances 25
The China Wave 25
Big-Stakes Games 28
Ying–Yang IPOs 32
Market Détente 35
Breaking Molds 40
Adam Smith's China Bet 42
Gains, Rules, and Risks 44
Information versus Noise 46
Real "Gung Ho" 48
Chapter 3 China Mobile: The Big Bet 51
First Dish in an IPO Banquet 53
Birth in a Maelstrom 57
Ripple Effects 60
Assimilating Global Standards 62
Of Men and Governance 66
Red Chip Scare 68
Spillover Effects 71
Quantity, Banditry, and Quality 75
New Generations, New Markets 78
Nothing and Everything 81
Chapter 4 Spreadtrum Communications: When the Chips Are Down 85
Stirring the Waters 87
The Basic Spreadtrum Story 92
Leading a New Chinese Industry 96
Pulling Back from the Brink 98
Shortsighted Shorting 101
Shorts Caught Short 105
Chapter 5 Calling the Bluff: Truths, Fictions, and CRMs 109
Initial Misgivings 111
In Through the Back Door 113
Dawn of the CRM Dread 116
A Short Love Affair for CRMs 119
Unaccountable Accounting 123
The Din of CRM Noise 125
A Reversal for RM Overhype 128
Chapter 6 Longtop Financial: The Costs of Dirty Dealing 133
The Longtop Shocker 133
A Fallen Icon 137
Deception's Depths 139
A China Problem? 142
New Stakes in the Game 145
The SEC's Big Bet 148
Upping the Ante 150
Beyond the Brink? 155
Chapter 7 Continuing the Bet: Accountability and Adaptability 161
Evolving Accountability 161
The Adaptability Challenge 163
About the Author 199
John Wiley & Sons Inc., global publisher of print and electronic products, specializing in scientific, technical, medical and scholarly journals, encyclopedias, books, and online products and services released ‘Betting on China: Chinese Stocks, American Stock Markets, and the Wagers on a New Dynamic in Global Capitalism’. This new book by American born, Beijing-based author consultant Robert Koepp suggests a new way to look at key aspects of China’s rise, present-day workings, and future prospects in the global economy through examination of Chinese stock listings in the United States.
The world is betting that China will continue as a major engine of growth for the global economy. A crucial but poorly understood topic is how U.S. stock markets are providing the most liquid and broadly rewarding conduit for placing the high-stakes wagers on China’s development and direction. The author elaborates the complex and often controversial aspects of Chinese stock issuances in America, using both market trend data and company-specific case studies to provide substantiated, practical, and revealing perspectives on the characteristics of the dynamics at play.
“The wagers riding on this new dynamic in global capitalism are not just about money,” says the author, “the dynamism that propels all the betting is about ‘a new way of looking at China’ and providing ‘a new way for China to look at the world’.”
From the watershed mega IPO of China Mobile on the New York Stock Exchange in 1997, to the near breakdown of the U.S.-China equity exchange relationship brought about by recent high-profile failures of Chinese issuances under a swarming of short seller attacks, ‘Betting on China’ offers refreshing insights through its multifaceted explorations, providing a window into China’s role as a dominant but still modernizing economic superpower.
Combining an insider's eye with an outsider's objectivity, Robert Koepp examines the multidimensional contexts of the reasons and the means by which China, America, and the global economy reap enormous gains from the process of Chinese companies issuing equity shares on U.S. stock markets.
This book looks into the real stories behind why and how China-based enterprises develop as public companies listed in the United States—and why government regulations need to work in support of and not against this force of market nature.
About the Author:
Rob Koepp is an American writer, consultant, and business executive with an eclectic background in finance, economics, technology, and the liberal arts. Dividing his time between the U.S., Europe, and Asia throughout his education and career, Rob began full-time work after college as an itinerant researcher on a Watson Fellowship that studied the evolution of Chinese-based calligraphies in countries throughout East Asia.
Fluent in Chinese and Japanese, Rob started regularly working in Mainland China as a World Bank-sponsored researcher advising the Chinese government on technology-based regional development. He subsequently served in such corporate positions as the managing director at a Sino-foreign joint venture of the CITIC Group, China’s largest financial conglomerate. A graduate of Pomona College and Cambridge University, he currently resides in Beijing where he works in financial consulting.
Koepp is the author of ‘Clusters of Creativity: Enduring Lessons on Innovation and Entrepreneurship from Silicon Valley and Europe's Silicon Fen’ and the translator of a bestselling Japanese illustrated biography of George Soros, both published by Wiley.
‘Betting on China: Chinese Stocks, American Stock Markets, and the Wagers on a New Dynamic in Global Capitalism’
by Robert Koepp
Published by Wiley; April 2012; ISBN: 978-1-118-08714-5; 256 pages;
Now available in Hardcover and e-book formats; US$39.95
For more information, please visit: www.wiley.com/buy/9781118087145